Fitch downgraded cash-strapped Venezuela to "restricted default" on Tuesday over its failure to make overdue payments on its sovereign bonds.

"Fitch Ratings has downgraded Venezuela's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C' and affirmed the Long-Term Local Currency IDR at 'CC'," the ratings agency said in a statement said